Wednesday, May 20, 2009

Its Good To Talk

What may you ask is the mobile termination rate and what does it mean and cost UK mobile users?

UK telecomms regulator Ofcom has announced a public consultation into the issue but public awareness may also help push the agenda forward and just as with roaming charges the EU may have a role to play in bringing about change.

The charge is a payment to mobile networks for receiving calls outside their network. Its set by the receiver and although it has dropped over the years it is now seen by many as counter productive and a money spinner. There are many devices are now exclusive to a network and the predominant user model is fixed term usage. This leads to users get tied into networks and the majority of calls received almost certainly being from fixed line and other networks.

The charge is currently 4.4 per minute for Vodafone and O2, 4.5p for Orange and T-Mobile and 5.4p for 3. The charge ultimately costs fixed line operators around £750m a year generates 14% per cent of mobile-to-mobile revenue. The USA, the model is effectively reversed and incoming minutes count as part of your bundle.
Ofcom also agrees that terminating networks have a monopoly position on the charge and is considering a number of options. So it appears we may soon be paying a lot less to talk.

To read more The Register

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